Core Viewpoint - David Ellison's company is intensifying its efforts as potential bidders prepare to submit new offers [1] Group 1 - The company has issued a pair of letters aimed at attracting interest from suitors [1] - The letters are part of a strategy to enhance the company's position in the ongoing bidding process [1]

Core Viewpoint - Netflix Inc's stock is experiencing significant technical difficulties, with a prolonged decline below the 200-day moving average, raising concerns about a potential Death Cross formation [1][4][8] Technical Analysis - The stock has been below the 200-day moving average for ten consecutive sessions, the longest stretch in over three years, indicating a serious technical issue [1] - A Death Cross is imminent, as the 50-day moving average at $113.57 is close to crossing below the 200-day moving average at $113.43 [2][3] - Current trading price is around $103.05, significantly below short-term momentum indicators, with the eight-day moving average at $106.32 and the 20-day at $109.15 [4] Momentum Indicators - The MACD indicator is at a negative 2.35, and the RSI has dropped to 37.64, nearing oversold territory but not yet indicating capitulation [5] Stock Performance - Over the past six months, Netflix's stock has declined by 17.49%, and by 6.42% in the last month, with year-to-date gains reduced to 15.35% [6] - The stock is losing its leadership position among mega-cap tech companies, which previously relied on its streaming growth narrative [6][7] Market Sentiment - The market sentiment has shifted from optimism regarding profitability and password-sharing impacts to concerns over slowing subscriber growth and increasing competition in the streaming sector [7] - The current trading setup is binary, with a confirmed Death Cross potentially leading to systematic selling and hedge-fund de-risking, while bulls may see a bounce opportunity if support holds near the $100 level [8]

Paramount Skydance had been considered the front-runner in the bidding war for Warner Bros. Discovery, but signaled on Thursday that it felt it is losing to Netflix in a process it deemed unfair. ...

Netflix Inc (NASDAQ: NFLX) remains in focus today after Jonathan Kanter dubbed its 80% cash bid for Warner Bros. Discovery assets the "hardest from a regulatory perspective. ...

Core Insights - Disney and Netflix reported contrasting quarterly earnings, with Disney beating EPS estimates but missing revenue expectations, while Netflix met revenue expectations but missed EPS due to a tax dispute [2][7]. Financial Performance - Disney's EPS was $1.11, exceeding the expected $1.05, but revenue was $22.46 billion, below the anticipated $22.75 billion [2][7]. - Netflix's revenue reached $11.51 billion, meeting expectations, but EPS was $5.87, missing the expected $6.97 due to a $619 million tax issue in Brazil [2][4]. Revenue Growth - Disney's direct-to-consumer segment saw an 8% revenue increase driven by subscription growth in Disney+ and Hulu, but the overall revenue growth was -0.5% year-over-year [3][5]. - Netflix experienced a 17.2% year-over-year revenue growth, attributed to membership expansion, pricing adjustments, and strong ad sales [4][5]. Operating Margins - Disney's operating margin was 11.9%, significantly lower than Netflix's 28.2% [5][7]. - Disney's profit margin stood at 13.1%, nearly half of Netflix's 24% [7]. Strategic Focus - Disney's Parks & Experiences segment achieved a 13% growth in operating income, and the company plans to invest $24 billion in content by fiscal 2026 while increasing its share buyback target to $7 billion [6]. - Netflix is focusing on expanding its user interface and integrating advertising platforms, achieving its highest quarterly view share in the U.S. and U.K. [4][6].

Core Viewpoint - Paramount has raised concerns regarding the fairness of Warner Bros. Discovery's sales process, particularly in light of reports suggesting a preference for a bid from Netflix [1][4][5]. Group 1: Sales Process Concerns - Paramount sent a letter to Warner Bros. Discovery CEO David Zaslav questioning the "fairness and adequacy" of the sales process, indicating a belief that it may not be in the best interest of stockholders [1][4]. - The letter from Paramount's attorneys stated that WBD appears to have abandoned a fair transaction process, favoring a single bidder, which they believe undermines fiduciary duties [4][5]. - Paramount specifically requested that the letter be shared with the full board of directors of WBD, highlighting concerns about management's enthusiasm for a deal with Netflix [5][6]. Group 2: Bids and Offers - Netflix has made a mostly cash offer to purchase Warner Bros. studio and HBO Max, while Paramount has submitted an all-cash bid for the entire company [2][7]. - Bankers for Paramount Skydance, Comcast, and Netflix have reportedly submitted second-round bids to WBD, indicating competitive interest in the company's assets [1][7].

Paramount Skydance has accused Warner Bros Discovery of running an unfair sale process that favors Netflix over other bidders, CNBC reported on Thursday, citing a letter sent by the newly merged media company. ...

Paramount Skydance Corp. said Warner Bros. Discovery Inc. isn’t being fair in its process to sell itself and isn’t acting in shareholders’ best interests, as a competitive bidding process is underway.In a letter to Warner Bros. Chief Executive Officer David Zaslav, attorneys for Paramount said the entertainment giant is favoring a rival bid from Netflix Inc., even after Paramount has submitted five offers. “It has become increasingly clear, through media reporting and otherwise, that WBD appears to have aba ...

Then there's power of Paramount Sky Dance and Warner Brothers Discovery. Both are trading lower this morning. Warner Brothers down 2%.Sky Dance also down 2%, with Paramount raising its breakup fee to $5 billion in its bid for the company. That in itself is a sign that it can clear regulatory hurdles. That's also happening with recent reports that Netflix is the lead bidder for the company.Bloomberg intelligence analyst Kevin Year joins us now with the latest. Kevin, let's start with this idea that Netflix i ...

M&A Activity - Paramount has raised its breakup fee to $5 billion in its bid for Sky Dance, indicating confidence in clearing regulatory hurdles [1] - Netflix is reportedly the lead bidder for Sky Dance, with its bid now consisting of 85% cash, raising concerns about the price being too high [3][4] - Warner Brothers Discovery's M&A situation continues to dominate the media landscape, with concerns about antitrust implications due to overlapping businesses among bidders [2][5] Antitrust Considerations - Paramount is viewed as having an advantage from an antitrust perspective due to its management's relationship with the administration [6] - Netflix's global size and its pursuit of studio and streaming assets may present regulatory challenges not only in the U.S. but also internationally [7] Box Office Trends - The box office is still recovering from pre-pandemic levels, with expectations for improvement next year due to increased supply from studios like Amazon and MGM [8] - There are concerns about consumer demand, as presale tracking for upcoming films like Avatar shows softer than anticipated interest [9] - A rebound in animation is noted as a positive trend, but there is a desire for a more diverse mix of original titles and budget sizes to alleviate pressure on theaters [10]